章節 2  How to Trade Support and Resistance in the Forex Market

Support and resistance are specific levels or zones on the trading chart, where the price of a Forex pair (or equity, commodity, etc.) is likely to find opposition. The reason for this is that these are psychological levels showing the different attitudes of the market players. In our case these are the bulls and the bears fighting for dominance in the market.

When price meets such levels it could lead to a bounce in the opposite direction of the trend or to consolidations (horizontal movement of the price). Also, the level could be broken and the price could make a rapid move.

What is the difference between a support and a resistance?

Supports are the levels which are beneath the current price, while resistances are the levels above. Furthermore, when price goes down through a support level and breaks it, this level becomes a new resistance and vice versa. In other words, when breaking the level in a bearish direction, price relocates under that level and the old support levels now becomes a new area of resistance. Have a look at the image below:

How to Trade Support and Resistance in the Forex Market-第1張圖

How to Trade Support and Resistance in the Forex Market-第2張圖

How to find support and resistance levels?

For the most part, support and resistance levels are very easy to find on the Forex charts. Every bottom on the chart is a potential support and every top is a potential resistance.

If we see the price dropping to a level and then going back up, we consider this area as an eventual point, where next time the market gets to that level, it might find opposition. If we see the price bouncing again from this level, then we confirm the level as a support. Then we assume that the price is likely to bounce off this support again in case of another drop. The same applies for resistance levels.

Not all support and resistance zones are created equal. We are only interested in trading valid supports and resistances as measured by their authenticity and potential.The more reliable support and

關於我們 用戶協議隱私權政策風險披露認證協議社群規範 幫助中心 意見回饋
App Store Android

風險披露

金融工具交易屬於高風險投資活動,有導致部分或全部投資本金損失的風險,可能不適合所有投資者。本網站所包含的任何觀點、聊天訊息、通知、新聞資訊、研究調查、分析、價格或其他訊息都是作為一般市場訊息提供的,僅供教育和娛樂之用,並不構成投資建議。所有的觀點、市場行情、推薦或任何其他內容可能隨時會改變,恕不另行通知。Trading.live對因使用或根據這些訊息而直接或間接造成的任何損失概不負責。

© 2024 Tradinglive Limited. All Rights Reserved.